With Cryptohopper's Portfolio Bots, you can control how often your crypto portfolio is rebalanced. But what are the options and strategies for rebalancing your cryptocurrency Portfolio Bot to match your risk management? Learn how to tailor your Portfolio Bot to your risk profile with Cryptohopper.

There are many factors to consider when managing a crypto Portfolio Bot on your preferred crypto exchanges, such as Binance or Coinbase. Here's a shortlist of important considerations for your crypto portfolio investments:

It's crucial to understand the level of risk you're willing to take when investing. Most crypto exchanges offer hundreds, sometimes over a thousand, trading pairs, like BitMart.

However, the top 25 cryptocurrencies by market capitalization are the most traded. Lower trading volume pairs (in other words, illiquid markets) can offer higher potential profits but also come with greater risks.

Ask yourself, "How do I invest in crypto?" Cryptohopper offers various Portfolio Bots for different types of investors. Check out all the Portfolio Bots on Cryptohopper and choose the one that best fits your profile. For example, the Cryptohopper Index 5 includes only the 5 largest cryptocurrencies for risk-averse investors, while the Cryptohopper Index 25 caters to risk-taking investors. Explore all the Portfolio Bots in the Cryptohopper Marketplace.

Would you like to decide how much of your funds are automatically invested in each cryptocurrency like Bitcoin (BTC), Ethereum (ETH), or Solana (SOL)? Read our article on how to set up a Portfolio Bot on Cryptohopper and configure it yourself.

We often get the question, "How much should I invest?" To ensure the Portfolio Bot functions effectively, it's important to consider the minimum trade amounts required by your crypto exchange when deciding how much to allocate to each cryptocurrency. Trading with amounts that are too small can cause issues for the Portfolio Bot.

Example:

Let's say you want to invest $300 across 10 different cryptocurrencies, each with an equal amount. Is this a good idea? Given that the minimum trade amounts on most crypto exchanges are typically between 5 and 10 USDT per trade, you would need to fully sell and repurchase your entire position every time a rebalance occurs. This could lead to higher fees.

Alternatively, if you allocate 33.3% of your investment to 3 different cryptocurrencies, you can use the "Rebuy, if buy/sell difference" option once the minimum trade amounts are met. This approach helps reduce your trading fees.

Going all in is not always the best approach when investing in cryptocurrencies. There are several ways to determine whether we are in a bull or bear market, such as the strength of the Dollar, central bank interest rates, and the Fear and Greed index. Based on these factors, decide what percentage of your crypto exchange balance you want to invest in crypto. This can be easily set with the "Maximum USDT amount allocated" setting under "Coins and amounts" in the Portfolio Bot Config.

Trading fees can significantly impact your total profits or losses over time. Read our blog about the effect of fees on investment returns here.

With Cryptohopper's portfolio rebalancing settings, you can decide how often your crypto Portfolio Bot should rebalance. Find out more about the rebalancing settings of Cryptohopper's Portfolio Bot here.

Many crypto exchanges offer simple buy and sell options, automated rebuy features, or automated cryptocurrency convert features. Did you know these transaction types cost you a lot of money and lower your return on investment? How? Let us explain!

Let's use Coinbase as an example, although this applies to most crypto exchanges. When you place these types of orders, Coinbase includes a spread in the quoted price. The spread is also included in the exchange rate when converting from one cryptocurrency to another. The spread used is always higher than when trading through a crypto exchange's API, which Cryptohopper uses for all automated trading bots. Read our article about the differences and how much using Cryptohopper could save you.

But how can you Dollar Cost Average with Cryptohopper's Portfolio Bots? Usually, depositing funds onto your crypto exchange is cheap. For example, Kraken charges no deposit fees when using SEPA. Simply deposit additional funds in your quote currency, and the Portfolio Bot will use these funds to automatically distribute them among your chosen cryptocurrencies.

Cryptocurrency trading can be exciting but also highly volatile. With crypto prices that can leap or fall rapidly, it's crucial to use the right strategies to protect your investments. One of the most effective strategies for trading highly volatile assets is the use of limit orders.

A limit order allows you to set the exact price at which you want to buy or sell a cryptocurrency. This gives you greater control and peace of mind, as you won't end up paying more or selling for less than you intended. For example, if you want to buy Bitcoin (BTC) but don't want to pay more than $30,000, you can set a limit order at that price. If the market price drops to $30,000 or lower, your order will execute. Similarly, if you want to sell Ethereum (ETH) at no less than $2,000, a limit order ensures it won't sell for less than that.

This strategy is particularly important for cryptocurrencies outside the Top 25 based on market capitalization. These smaller cryptocurrencies often have thin order books, meaning there are fewer buy and sell orders at various price levels. As a result, their prices can be more volatile and less predictable. Using limit orders for these less liquid assets can help avoid unwanted surprises.

To help you better understand the differences and benefits of using limit orders versus market orders, we have a YouTube video that breaks down these concepts in detail. The video will show real-world examples and explain how limit orders can help you make smarter, more controlled trading decisions.

In summary, using limit orders in cryptocurrency trading, especially for highly volatile or less liquid assets, can provide greater control over your trades and help you manage risks effectively. Always stay informed and use strategies that align with your trading goals and risk tolerance.

Use ticker rate is related to where you place your orders in the orderbook. Since trading volumes can differ a lot between crypto exchanges and trading pairs, we recommend using 'Highest bid, Lowest ask' to minimize your losses. If 'Use last tick if higher or lower' is selected, the sell or buy price will be the last tick value. 'Always use last tick' takes the price of the last tick, regardless of price fluctuations.

When trading on trading pairs with low trading volumes, we recommend using Highest bid, Lowest ask as this setting looks at the highest bid or lowest ask values in the orderbook.

By considering these tips, you can optimize the performance and efficiency of your crypto Portfolio Bot, making it a powerful tool for automated cryptocurrency investment.